Asian stocks buoyed by smaller Fed rate hike bets, but China lags

By Ambar Warrick

Investing.com-- Most Asian stock markets rose on Thursday amid growing expectations that the Federal Reserve will temper its pace of interest rate hikes, although Chinese equities lagged as the country logged record-high COVID-19 infections.

Japan’s Nikkei 225 index jumped 1% in catch-up trade, while India’s Nifty 50 index added 0.5%. Japanese stocks largely looked past data showing a prolonged contraction in the country’s business activity.

Malaysian stocks surged 2%, and were the best performers in the region after Anwar Ibrahim was confirmed as the country’s new Prime Minister, ending five days of political deadlock. A tightly-contested general election saw Malaysia experience its first-ever hung parliament this week.

On the other hand, Chinese stocks retreated despite new stimulus measures from the government, as the country logged a record-high jump in daily COVID infections. The new outbreak saw the reintroduction of new curbs in several major cities, including Beijing and Shanghai.

The blue-chip Shanghai Shenzhen CSI 300 index fell 0.4%, while the Shanghai Composite index fell 0.2%, largely lagging a rally in their regional peers.

Australia’s ASX 200 rose only 0.1% amid concerns over China, given the country has heavy trade exposure to the mainland.

Broader Asian stock markets surged after the minutes of the Federal Reserve’s November meeting showed that several officials supported a slower pace of interest rate hikes in the coming months, in order to gauge the full impact of sharp interest rate hikes on the economy.

But officials said that rate hikes will only cease when inflation shows clear signs of slowing. While CPI inflation eased more than expected in October, it remained well above the Fed’s 2% annual target. Other economic indicators also showed that the U.S. economy was likely cooling after a bounce in the third quarter.

Still, the prospect of smaller U.S. rate hikes was welcomed by Asian markets, given that the sector was sold off heavily amid rising interest rates this year.

South Korea’s KOSPI index jumped 0.9% after the Bank of Korea raised rates by a relatively smaller margin. But the central bank indicated that it intends to keep raising interest rates in order to curb high inflation.

Other technology-heavy bourses also benefited from the prospect of smaller rate hikes. Hong Kong’s Hang Seng index added 0.6%, while the Taiwan Weighted index jumped 1.2%.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    London
    EC2A 2BN
    United Kingdom


    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    Dubai
    United Arab Emirates
     
    T: + 00 971 44 22 888
    E:  info@ofmarkets.com
     

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: